Three Texas homeowners filed a federal lawsuit alleging that the Texas Windstorm Insurance Association fraudulently reduced repair estimates for properties damaged by Hurricane Beryl, leaving them short by tens of thousands of dollars.
Here's what to know
According to Insurance Journal, the homeowners say that TWIA was involved in lowering estimates provided by field adjusters after the storm and then presenting the new estimates as originals. In one case, the altered estimate allegedly reduced the payout by 66% — from $91,000 to $31,000.
The plaintiffs want the case treated as a class action suit under the federal Racketeer Influenced and Corrupt Organizations Act, or RICO.
Hurricane Beryl came ashore on the Texas Gulf Coast as a Category 1 storm July 8, 2024.
TWIA is the state's insurer of last resort for wind and hail and says it has paid $336 million across roughly 34,000 Beryl claims, per Insurance Journal.
More background
When repair estimates are reduced improperly, families may be left without enough money to replace roofs, fix walls, or make their homes safe again after a storm.
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According to Insurance Journal, an Ohio-based supervisor at Leading Edge Claims Service — a contractor that now goes by Hansen — allegedly accessed field adjusters' estimates electronically and reduced covered repair amounts before claims were completed.
The homeowners asked for actual damages as well as treble damages, which would triple any award. If the lawsuit is certified as a class action, it would open the door for other policyholders with similar claims to participate.
TWIA spokesman Aaron Taylor told Insurance Journal that the organization does not comment on active or potential litigation. "The Association's claim-adjusting procedures are compliant with applicable Texas and federal laws," Taylor said.
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